Skip to main content

tv   Real Money With Ali Velshi  Al Jazeera  July 25, 2014 2:00am-3:01am EDT

2:00 am
plus pages, you can find us on twitter. we'll see you next as america goes, so goes the world as we look at the global economies chances for growth the rest of the year. also america is number one when it comes to frac-ing for gas and oil, i'll tell you what the rest of the world needs to do to catch up. plus the grocery chain ceo who is so popular, even cashiers and clerks are risking their own jobs to get him back. "real money." ♪
2:01 am
this is "real money." you are the most important part of the show, so tell me what is on your mind . . . weather, war and demand have taken a toll on the global economy today, and they are the reason the international financial bang cut its forecast to 3.4%. you can see that in the middle of your screen. it is better than the 3.2% that the global economy grew last year on the last, and the imfc's growth accelerating to 4% in 2015. but i want to zero in on three of the countries responsible for the gloomier growth forecast. exhibit, a, the united states.
2:02 am
bad weather and other factors caused the imf to lower its forecast. next up is china where weaker than expected spending by consumers and businesses lead the imf to reduce its forecast slightly to 7.4% growth. and unlike the u.s. the imf predicts slower growth next year. and russia's economy is seen growing just .2 of a percent this year, and investors yanked money out of the country since the developments in crimea. the prospect of increased sanctions against russia as the conflict in ukraine continues has some analysts predicting an outright recession in russia and as you can see it is planning to grow .2 of 1% so recession is not too far off. the imf warned that conflict in the middle east and other
2:03 am
political risks could lead to sharply higher oil prices. back in this country the risk of long-term rising interest rates could also destabilize an economy is only now getting back on its feet. the imf called for more investment and infrastructure. joining me to now to explain what other specific steps governments can take to improve the outlook for global growth is the division chief of the research department at the imf. thank you for joining us, and thank you for this report. >> thank you, ali. >> first of all to put it into context, this is the second time, really, that we have seen downward revisions for 2014. for my viewers who don't spend their time sort of necessarily studying normal economic growth
2:04 am
trends where does 3.4% global growth stand? is it good, bad, medium? >> it's medium. it's not good. the global economy -- the normal growth is about 4 or higher, so in that sense it's a weak recovery. the global recover -- the global economy is not in a recession. the major economies are growing, have turned the corner, that's the good news, but the recovery is unevening across the globe and it is weak. so in that sense we remain concerned about the robustness of the global economy and i nurtured. >> but you predict that 2015 will reach 4% global. that's not bad, although you do warn you think you'll see slowing in some areas in china? >> so the slowing in china is actually welcome.
2:05 am
we long have felt for some sometime that -- that very high growth in china was not sustainable anymore. it was unbalanced. it was too focused on investment that grew too rapidly with [ technical difficulties ] too much credit -- [ technical difficulties ] growth in china is slowing is a good -- is a good development. but the concern is it should be [ technical difficulties ] to somewhat -- we have in our forecast, so we don't see a strong [ technical difficulties ] gradual decline in growth to about 6.5% over a five-year period. so that's an orderly transition. >> oil has been hanging around in price for some time, there has been an up tick in the last few weeks, but you are concerned about an increase in oil prices. tell me why.
2:06 am
we know in the united states we're increasing output, and consumption in many nations is [ technical difficulties ] so what is driving your concern? >> concern about all prices, really risk that there is a dramatic deterioration in the balances in the oil markets. so what i mean is in our price -- [ technical difficulties ] relatively -- weak reflects the state of the global economy. especially in the middle east, oil supply in the united states is growing, is increasing, and that is offsetting the impact we would have seen otherwise, but you could imagine that there could be a more dramatic deterioration in supply outages, and that is the concern for supply spikes. >> we're going to speaking in
2:07 am
another segment about oil production globally so this is an important point. now let's talk about the united states. obviously the united states is quite responsible for a large chunk of this -- this downward revision in the forecast for 2014. a lot of that is because the u.s. had a very rough first year. are you confident that the u.s. is back on track? and are you worried about the federal reserve getting out of the stimulus business in the way that it has been? >> no, so for the u.s. economy, we think it's largely a matter of a very bad first quarter, much worst than expected. and what we think is that growth in the united states will rebound. we already see that in the in coming data in the us. we see -- expect quite the solid rebound, so we expect growth in the united states for the rest of the year to be above 3%.
2:08 am
so in that sense, the -- the reason for the -- why annual growth in 2014 is considerably weaker than we expected is quarter. >> is -- there's a lot of grimness in this report. you did mention that the one part that somebody might think is negative, slower growth in china is actually a positive. what are the bright spots in your report? >> there are also upward revisions. we have upward revisions in germany, in the united kingdom, and we have upward revisions in japan, which is very encouraging where economics seems to gain traction despite the increase in the consumption tax and the reduction in the previous fiscal stimulus, which is being unwound over the next year or so, and that is encouraging. the private demand, including
2:09 am
investment has started to pick up in japan, so there are bright spots, and broodly speaking, our in coming data seems to confirm that much of the slower growth we saw in the first quarter was temporary and that the global economy is reverting back to trajectory we for example had in the april 2014 world economic outlook, or the january world economic outlook. >> thomas what a pleasure to talk to you. thank you for putting out the report and sharing some of the findings with us. america's right in the middle of a frac-ing boom, but the rest of the world isn't quite there yet. i'll tell you why. and if you are looking for a job, i'll tell you about a field that can't find enough skilled workers. that story and more as "real money" continues. keep it right here. ♪
2:10 am
>> disappearing polar caps... >> in the arctic the prize promises to be much substantial >> untapped resources... >> the really big expense hasn't been tested in the arctic >> could climate change reveal new battlefields? >> countries are developing combat capabilities fault lines al jazeera america's hard hitting... >> they're blocking the doors... >> ground breaking... >> we have to get out of here... truth seeking... award winning investigative documentary series
2:11 am
>> a shocking america tonight investigative report... >> you take someones hopes and dreams of childhood, and then out right steal their money >> wishing to start a family >> we lost over $20,000 trying to do surrogacy in mexico >> but left with broken hearts and empty pockets >> how much money do you owe people >> around $350,000 >> praying on the vulnerable
2:12 am
>> i have nothing to hide, if i was a scam artist, i would have cut and run from here >> surrogacy inc. an american tonight investigative report only on al jazeera america real reporting that brings you the world. >> this is a pretty dangerous trip. >> security in beirut is tight. >> more reporters. >> they don't have the resources to take the fight to al shabaab. >> more bureaus, more stories. >> this is where the typhoon came ashore. giving you a real global perspective like no other can. >> al jazeera, nairobi. >> on the turkey-syria border. >> venezuela. >> beijing. >> kabul. >> hong kong. >> ukraine. >> the artic. real reporting from around the world. this is what we do. al jazeera america. ♪ the european union still can't agree on tougher sanctions against russia for its support of rebels in ukraine. diplomats have gathered to try to come up with some form of punishment. restrict k russian access to military banks and equipment are on the table.
2:13 am
ambassadors did agree to add 15 people and 18 entities to the eu's frozen assets list. these sanctions are meant to pressure putin to stop backing the rebels. meanwhile a government shakeup in ukraine. the prime minister resigned today after two parties left the coalition go. the move was welcomed by the president, who can now dissolve parliament and call for new elections. he promised elections after he became president in may. the situation in ukraine has drawn attention to europe's deep dependance on russia for energy. meanwhile america's dependance on foreign energy has drooped thanks to frac-ing. other nations are taking note. they are all weighing the merits of frac-ing, but as david
2:14 am
reports, big obstacles stand in the way. >> reporter: this is the face of new energy renaissance. drillers extract crude oil and natural gas through frac-ing. water, sanged, and chemicals are pumped into the ground at high pressure to break up shale rock formations. the u.s., latin america, north africa, europe and asia, collectively hold an estimated 335 billion barrels of shale oil, and natural gas all trapped in shale rock formations, but as of now only the u.s. and canada are producing shale oil and gas in commercial quantities. the u.s. which fracs almost 100 new wells per day, now
2:15 am
contributes nearly 10% of the total crude oil world supply. issues like access to mineral rights, higher taxes, and stricter regulations in some countries tend to make america more frac friendly. green parties which tend to wield more influence in europe than the u.s. have sited concerns about residents health and effect on air and water quality. >> if this shale frac-ing technique takes off, china and europe, and africa, some other places, you could have a ocean sudden. >> reporter: and that could change the math for companies investing in america's oil boom. russia has by far the most of any nation. china
2:16 am
ranks second behind the united states, and both hope to foster energy booms of their own. >> when it comes to europe and its sanctions on russia, germany and italy are really pushing back on the idea of sanctions because they are so dependant on russian natural gas. in germany lifted its moratorium on frac-ing that country could be free of its independence of russia in 15 years. that's according to the author of this book. he is also vice chairman at research firm ish. he joins us from washington. dan thank you for being with us. germany an industrial powerhouse, a country we do not want to slip into any kind of recession is really dependent on this gas coming from russia, and
2:17 am
as a result in hamstrung on sanctions against russia. >> germany gets about 30, 35% of its natural gas from russia as of course has a very dense trading relationship with russia, and so is very sensitive to those questions, but i think that, you know, what we're seeing building up in europe is that there will be more sanctions of some kind or another, including some aimed at the energy sector as fighting continues to intensify in ukraine, and following up on the airline disaster. >> how much do european countries look to america and say 15 years ago, no one would have guessed this moment would come in america, where we are discussing relative energy independence or at least continental energy independence. is that making some europeans think twice -- >> ali, not 15 years ago, 6
2:18 am
years ago or even 5 years ago. u.s. oil production is up 70% since 2008, and i think that the -- you know, europeans as people all over the world are noticing this -- and seeing the striking change that now the predictions are the united states will overtake russia and saudi arabia as the world's number one oil producer in the next few years, and i think the europeans are clearly looking for further diversification in their energy supplies. and one of the things they are looking for is when is the united states going to start exporting liquified natural gas to their mix and probably could start as early as a year and a half from now. >> does that keep the lid on the idea of frac-ing in europe? if they know they can get this natural gas -- >> well, you're -- yeah, well, you point -- you are pointing to something that president obama said when he was in europe, it's great for the europeans to be looking to the united states for
2:19 am
shale gas, but what about at home. indeed germany has the potential to produce as much shale gas as it imports from russia, england -- the british government is -- is the one -- you know, unlike the french and the germans are more open to this and encouraging it. poland -- one of the countries with the greatest potential is ukraine, but nothing is going to happen there because of these circumstances. but germany's problem is it has embarked on this high-cost energy strategy, and now finds itself competing with the united states, and the german business community has been alarmed for a year or so about loss of competitiveness, and indeed is investing in the united states, and the german economic's minister warned that germany could be facing a dramatic deindustrialization. >> and cheaper energy costs, we have seen this in the
2:20 am
united states in our quest to eliminate the drain on the middle class. cheaper energy costs help you keep these factories open. let's discuss u.s. oil production. we just spoke to somebody from the imf who warned that higher oil prices could be a drain on the economy. the united states creating all of this oil. is there some chance of the united states being able to export oil? >> interestingly enough, the united states is the largest exporter of oil products, i.e., gasoline, jet fuel and so forth, but it's prohibited under regulations left over from the 1970s, to export crude oil, and our system is not balanced in the type of new oil we are producing. so kind of the hottest energy issue in washington right now is around this oil export question. the administration has said that
2:21 am
it is listening to -- wants to learn more about it, sa there have been some tiptoe steps in the last few weeks towards it, and i think, you know, eventually we'll see this kind of policy really left over from decades ago, probably will disappear, and i think -- i think the significance of that, lng exports and so forth says the united states is a player in these global markets in a different way than before, adds a new element of influence to america's position, and at the same time is kiekd of a counter weight to exports from other countries including russia. i think it will have a psychological and strategic significance. >> dan thank you so much for joining us. >> thank you. if you are unemployed right now, it is still a tough job market, but there is one industry where the bosses are looking to fill a lot of positions fast.
2:22 am
no job, then no degree. i'm looking at schools that through college. ♪ >> start with one issue ad guests on all sides of the debate. and a host willing to ask the tough questions and you'll get... the inside story ray suarez hosts inside story weekdays at 5pm et / 2pm pt only on al jazeera america
2:23 am
>> audiences are intelligent and they know that their needs are not being met by
2:24 am
american tv news today. >> entire media culture is driven by something that's very very fast... >> there has been a lack of fact based, in depth, serious journalism, and we fill that void... >> there is a huge opportunity for al jazeera america to change the way people look at news. >> we just don't parachute in on a story...quickly talk to a couple of experts and leave... >> one producer may spend 3 or 4 months, digging into a single story... >> at al jazeera, there are resources to alow us as journalists to go in depth and produce the kind of films... the people that you don't see anywhere else on television. >> we intend to reach out to the people who aren't being heard. >>we wanna see the people who are actually effected by the news of the day... >> it's digging deeper it's asking that second, that third question, finding that person no one spoken to yet... >> you can't tell the stories of the people if you don't get their voices out there, and al jazeera america is doing just that. >> cornell university president david skorton >> is a college education worth
2:25 am
the price? >> discusses the purpose of college >> students allow yourself to dream... it's very, very, important >> and his post university plans >> the intersection of the sciences and the arts was very attractive to me... >> every saturday join us for exclusive, revealing, and surprising talks with the most interesting people of our time. >> talk to al jazeera only on al jazeera america ♪ >> we got another sign today that the u.s. labor market keeps getting stronger. the number of americans filing new claims for first time unemployment benefits fell. we haven't seen a number that low since february of 2006. summer claims usually increase because of temporary factory closings. to put it in perspective how far
2:26 am
we have come, at the depths of the great recession in early 2009, more than 600,000 people a week were filing for benefits. data out today shows home sales tanked 8% from the previous month. and sales are down more than 4% for the first six months of this year compared to last year. home building is a major employment engine and weak home sales could be a drag on economic growth. we talk a lot about the difficulties in finding a job, but now we're going to turn the stables. a new study finds that 70% of construction companies are having trouble finding workers. there are plenty of help wanted signs for skilled workers, but few are knocking on the door.
2:27 am
and the problem is expected to get worse. >> reporter: it's not hard to tell in nashville there's a boom in construction. >> whether it be hotel projects, mixed-use projects, we have a ball field going up. we're doing a river front project. so there are a lot of different projects out there right now. and it only seems to be -- quite increasing. >> reporter: but it has come at a time when the industry says there is a shortage of qualified workers. this man says many subcontractors have had to deplay projects. >> there is a lack of skilled workers, and the lack of people actually getting into the construction industry, so when they do need folks, there's just not enough skilled workers out there right now. >> a nationwide survey by the associated general contractors of america, which represents more than 30,000
2:28 am
companies, found 74% of construction firms report having difficulty in finding skilled labor, and nearly half of those surveyed expect the problem to get worse. the shortage can largely be tied to the recession in 2008. when nearly 2 million of the 8 million construction workers lost their jobs, retired or found other careers. >> it's almost the candle being burned at both ends. older construction workers are getting out, but they are not being replaced with younger people coming into the industry. >> reporter: the tennessee college of applied technology offers a 16-month program to certify students in carpentry and electrical fields. but steve lame says in the last few years, interest has dropped. he says wages are not the issue.
2:29 am
>> we also see at the secondary level, high school counselors, guidance could sell lors and what not, they are a pushing students so hard to go into college, they are not really talking about vocational education like what i teach. >> reporter: and if in the industry worry with the low number of young people entering the field now, the shortage will be a concern for years to come. well the ignition switch recall crisis hasn't hurt general motors much in terms of sale, but it took a big chunk out of the company's bottom line. plus when the student becomes the teacher. i'll tell you what some chief executives are learning from workers half their age. ♪
2:30 am
>> on al jazeera america presents >> we always have strikes... people should never be allowed... >> what started as a peaceful protest >> police seem to stick to the self-defense story >> became a horrific moment in south african history >> i don't think any organization in this country would ever anticipate this type of violence >> what really happened that tragic day? >> it is the time to point finger at those whose fingers pulled the trigger >> al jazeera america presents miners shot down only on al jazeera america
2:31 am
>> consider this: the news of the day plus so much more. >> we begin with the growing controversy. >> answers to the questions no one else will ask. >> why did so many of these people choose to risk their lives? >> antonio mora, award winning and hard hitting. >> people are dying because of this policy... >> there's no status quo, just the bottom line. >> but what is the administration doing behind the scenes? >> real perspective, consider this on al jazeera america
2:32 am
>> israel's invasion of gaza continues tonight. >> we have been hearing a lot of tank shelling coming from where we are, here. >> every single one of these buildings shook violently. >> for continuing coverage of the israeli / palestinian conflict, stay with al jazeera america, your global news leader. ♪ spring was a good time for ford, the auto maker made $1.3 billion in the three months ending in june. that is a 6% increase from the same time last year. the company's north american sales were its best ever. lower costs on materials like steel and aluminum boosted its bottom line as the increase in parts. it says the sales will likely decline in 2015. meanwhile the steady stream of recalls is taking a huge bite out of general motor's products. they are down more than a billion dollars compared to the
2:33 am
same period last year. gm's profit was reduced by charges related to a record number of recalls, and a victim's compensation fund for those killed or injured by the faulty ignition switches. the company acknowledged the estimated cost could go higher, and the volume and expense of future recalls it expects will go down. heidi moore and financial economic editor for the guardian u.s. and she says you could argue further repercussions are welcome. >> thank you. >> gm is not suffering a consumer revolt. it has actually not been bad for them the way things have gone. but how do you feel so far regarding both the recalls and the inquiry into what happened and their decisions. >> gm is actually at this point getting off easy.
2:34 am
if you look at the scale of the actual recall, we're talking 30 million vehicles, 60 recalls, that is a huge cap it lags for one of the u.s.'s biggest auto makers. so they are just losing a little mronny on paper right now, they are getting a little heat from kopg, and they basically have the room to try to get their act together. this is the best thing a corporation could ask for, unfortunately it is not the best thing for drivers or shareholders, because you want to know when is this going to end and gm has no answers. >> when you brought up 30 million vehicles. we see these in dribs and drabs. and i'm never certain whether they know what all of the recalls are now, or whether they are pacing it out so you can't keep track. >> i would speculate towards the latter. it's incredibly hard to keep track and it helps them manage
2:35 am
the outrage, because if they were to announce this all at once, it would probably sink the company. but they have done it every week, every couple of weeks, so people have enough time to absorb it, but it doesn't give us an end date. how bad is it that they could screw up on 30 million vehicles. we don't know that, and that's going to be a key part of when the company start to heal and starts to do a better job. >> many of our viewers will be investors even if they don't know or care. so at what point is this good? there are times in the history of these companies, i think of ford when the stock plummeted to a dollar, and that ended up being a good investment. at what point do you say it's all out there, we're ready to go. gm. >> yeah, if investors were wise they would want that time toment
2:36 am
come as fast as possible. investors don't like uncertainty in most situations. gm is an american institution and wants such a powerful history. no one wants to bail on the company. >> sure. >> but this is a company that has really screwed up, and investors don't know when it is going to stop screwing up, and when that will hit the stock price in a real way. >> people are connected to gm. everyone knows somebody that worked there or worked for a dealership or they sponsored your team. fail. but i'm perplexed. americans -- i don't know why are they not more concerned about this? >> i think that's an excellent question. and there are probably a number of threads to that. one being this being a big summer for political news. news that has pushed gm out of
2:37 am
the spotlight. and you have other companies like toyota and chrysler making their own recalls. so gm is not standing alone. and that helps as well. and then the last thing is that capitalism isn't always efficient. you want the people who screw up to be punished quickly, but if you are one of the thousands of employees at gm you are glad you are getting a break right now. >> we saw auto debt is at its highest. this is a good time for the auto industry, and maybe gm is reaping some of the benefits. a lot of their sales are still fleet sales, rental companies, and companies that buy a lot of cars. >> that's right. and we have seen unprecedented auto lending. you are seeing auto loans extended as long as seven years.
2:38 am
the interest rates are incredibly low, and that makes it more appealing for customers to buy cars. they are thinking what are the chances that this car will be recalled? this >> that's interesting. americans are americans for a reason. heidi always a pleasure to see you. >> thank you. general motors is making claim forms for its compensation fund available august 1st. a death would automatically be awarded $1 million for pain and suffering above any other payments. the compensation fund is unlimited. the administrator says he will use actuarial tables to calculate the size of a payout. one example was a 25-year-old deceased driver with two
2:39 am
children and earning $46,000 a year, would receive approximately $2 million. coming up i'm going to show you how younger workers can teach the boss a thing or two, and a ceo who lost his job, and the rank and file workers who him back. ♪
2:40 am
2:41 am
>> this, is what we do. >> al jazeera america. when you think of a mentor, at lease when i do, i think of an older worker teaching the ropes to a younger employee. but there is a shift going on at a growing number of companies. tech-savvy 20 somethings are passing their knowledge up to an older generation not wanting to get left behind. mary snow has more. >> reporter: at 50 years old and the chief human resources
2:42 am
officer at mastercard, ron is used to being in charge, except for one thing, social media, creating his professional twitter account in december of 2013 was a milestone, and to do it, he had to reverse the traditional mentor role and turn to a 24-year-old. >> i have children rebecca's age. and as a father i feel like sometimes i know everything, and really having rebecca mentor me i almost felt stupid asking her, good. >> reporter: how did you feel? >> i was excited. >> reporter: excited but nervous at the thought of mentoring an executive far above her on the corporate ladder. >> it has been a h-- humbling experience that i started here two weeks after i graduated from college. and this tells my opinions and skills are valid.
2:43 am
>> skills she started learning as a teenager by using facebook. >> as an executive i had been trained to be very careful in my communications, so now you are putting me on twit we are 140 characters, and there is nobody intimidating. >> reporter: while mastercard is among one of several companies to embrace the mentoring, the trend started in the 1990s. one research who studied reverse mentor at companies, said these expanding. >> since the reverse mentoring deals with the higher arak call gap, it turns the table. i think stereo types related to
2:44 am
ages and generations really need to be dealt with head on. >> reporter: she says melinals can use skills from those they are mentoring. being active on social media allows ron to connect directly with potential hires both inside and outside the company. he sees no other choice. >> the generations in the workplace are changing, right? this millennial generation is becoming a large part f our work force, so we have got to shift with it. >> mary snow, al jazeera. >> some workplace experts recommending a dose of caution. paul bernard is one of them. thank you for being here. the gentlemen that mary profiled in the story is a human resources executive. and i completely get why he does need to understand social media
2:45 am
because it becomes such an important process of the recruitment or background checking process. who is this good for and who is it not good for? >> i think it can be good for many senior executives, but it has to be used with caution, because social media is -- you can't communicate with the entire world with 140 twitter characters, and i think there are many things that you can learn from with social media, but i don't know, for instance, if a cfo should be communicating with investors with social media. i think it is a great way to gather information. and i think the whole concept can be useful, but one has to understand that there are -- there are limitations. the program has to be managed. it's interesting that he was in hr, which means there was a stakeholder, utilize andi
2:46 am
directing this program. in situations where i have seen it fail -- >> you can't loosy goosy walk up to someone who happens to be 24 years old, and say, hey, mentor me on the internet. i think there has to be this person has a good deep knowledge of it. >> it needs to be structured and there needs to be buy in from the top that both will devote time to it. many of the things that go wrong with reverse mentoring are similar with what go wrong with corporate mentoring programs in general. people sign up but they don't show up, or someone goes awol either on the mentoring level or the mentee level. but there can be tremendous benefits for the mentor and the younger person.
2:47 am
my anecdotal information is that younger people who have involved in good reverse mentoring program are -- stay at traditional companies longer -- >> because they feel like they have had some impact. >> yes, and because they had frequently access to the sea level suite. >> right. >> and people involved in these successful programs find out that they are suddenly viewed as high potentials. traditionally high potentials would be people from say the top five or ten business schools, and this way you diversify the high-potential pool which can be very powerful. if this is one of the tools a valuable. >> obviously every company of note has to have some social media strategy. and many companies end up hiring
2:48 am
people to deal with that, or hiring consultants, i imagine there is a cost effectiveness if you can get the people within your company to do this. is there a sense that because these people are young, they are going to be better at it, than season -- someone who is older and just gets it. >> i would say there are generalization. younger people immersed in this culture, it's as if they are native speakers of french, so to speak. >> right. >> and older workers may not be as well versed not just in social media, but in the cloud and what the desktop or your mobile app can help you with. it's as if you are suddenly immersing yourself in a true global culture.
2:49 am
>> more than just learning how it works -- it's a way of thinking about things. >> it's a way of thinking about things and interkt ag with the world, but there are also cautions. you cannot let the tail wag the dog. you cannot as a mature executive assume that everything that the 22-year-old that is advising you what to do is what you want to do and what you should do. too often younger people do not have the same focus on privacy and con if ie ied -- confidentiality. and you have to be very, very careful. if you are a cfo involved in some discussions with a potential buyout partner, you have to be very, very careful about. >> right, and you if you are not a native speaker you may not know that one goes in this box
2:50 am
and that one goes here. thank you for being with us. >> thank you very much. plenty of students work their way through school, but i'll show you where a job isn't just optional, it is required. and i'll tell you about the workers who are rallying to get their fired ceo back. ♪ >> on techknow... >> we're heading towards the glaciers >> a global warning >> is there an environmental urgency? >> that is closer than you think... >> even a modest rise, have dramatic impacts on humankind. >> how is it changing the way you live today? techknow... every saturday, go where science meets humanity... >> this is some of the best driving i've ever done... even though i can't see. >> techknow... >> we're here in the vortex... only on al jazeera america
2:51 am
>> i'm joie chen, i'm the host of america tonight, we're revolutionary because we're going back to doing best of storytelling. we have an ouportunity to really reach out and really talk to voices that we haven't heard before... i think al jazeera america is a watershed moment for american journalism >> now available, the new al jazeea america mobile news app. get our exclusive in depth, reporting when you want it. a global perspective wherever you are. the major headlines in context. mashable says... you'll never miss the latest news >> they will continue looking
2:52 am
for survivors... >> the potential for energy production is huge... >> no noise, no clutter, just real reporting. the new al jazeera america mobile app, available for your apple and android mobile device. download it now ♪ president obama was in los angeles today promoting a new jobs training law he signed on tuesday. he spoke to stress the importance of teaching new skills to workers especially in fast-growing sectors like health care. it gives local governments greater flexibility in how they use federal money for training programs. rising college tuition and soaring student loan debt have focused new attention on a small group of schools that have been around for more than a century. they are called work colleges, and they require the student to have an oncampus job.
2:53 am
they had less than half of the debt of students who graduated from private or public colleges. many work college students say the schools offer experiences other schools can't match. >> reporter: these blacksmiths are actually college students in ashville, north carolina. >> it's going to go across the formal garden. it is going to be really sick. >> reporter: they are fashioning metal goods for sale. >> what is this? >> these are nettles they grow next to our herb garden. >> reporter: this is how warren wilson integrates work with learning, and makes the price tag more affordable. it's one of seven federally
2:54 am
recognized work colleges. students must work 15 hours a week, or 3 hours aday for the entire academic year. their annual compensation, 3,000480 dollars. while students pay federal, and state taxes on their earnings, they never really get a paycheck. >> we don't see the money at all. >> what! >> yeah, nothing. >> the limit is 20 hours so they have time to study. >> this is the student work force here. every resident and most of the day students that are working are reflected here. >> those 110 crews are made up of warren wilson's 924 students who are doing everything from fixing issues.
2:55 am
>> students working in wellness areas. that includes working with athletes working on sprains, and aches and pains. they do massages as well. >> reporter: unlike traditional work study, these students are locked into their work agreements. and if they decide i don't want to work -- >> that's not a decision you can make here. >> reporter: if you don't work at these schools, you don't graduate. warren wilson offers assistance to students beyond their work agreements, but many also take on loans. here students have almost no out of pocket expenses because the schools have large endowments and award everyone generous scholarships. that's also the reason experts say this education model isn't for every school. >> so it's probably not scaleable in that way. however, i think there are lots of ways that other institutions could mimic some of the good
2:56 am
things that go on at work affordable. >> reporter: but it would require schools spend money and create jobs for students even when it doesn't need the labor. >> we don't have the flexibility from a fpsal standpoint, to manage expenses that another college has, because we have a paint crew. we have to have painting for them. we have to spending money on paints and brushes. >> reporter: yet that commitment to work is why many students enroll here. this biochemistry major is part of the class of 2014. >> i grew up here in so many ways. my life has completely changed since i have been here. i changed what i want to do for the rest of my life, where i find happiness. >> reporter: she says her on-campus job taught her the value of work, and instilled the opinions of following through on a financial commitment.
2:57 am
well, amazon failed to deliver what investors wanted to see when the company reported results for the three months ending in june. they expected a loss, but amazon reported a loss bigger than the one that was forecast. one reason, amazon as invested heavily is several new services. including a smartphone. the phone goes on sale tomorrow. and tomorrow we'll take a look at how the phone could change the course of the smartphone wars. bill simon is stepping down from his position at wal-mart. he is credited with spear heading wal-mart's initiative to lower health care costs will be replaced by the man head wal-mart's china division. the news comes right before
2:58 am
wal-mart announces its latest quarterly earnings. previous results haven't been sorosy. as sales have slowed and customer traffic declines. we have seen plenty of protests against companies when workers are angry over bloated ceo salaries. at market basket supermarkets something different is happening. workers there are protesting to bring back their ceo. he was ousted from the company as a result of a long-standing family feud. his cousin is now in control of the board. workers are furious, they are holding protests, and letting shelves go bare. what is about this ceo that sets him apart? one of the fired workers told the "washington post" that his former boss can be
2:59 am
compared to gorge bailey from the film it's a wonderful life. it has gained a reputation for paying workers well and providing good customer service. workers who want to hold on to that plan, another protest friday. they are calling it their final protest. whatever the outcome, think about this, what if the head of your company was suddenly ousted? what would you do? one thing is for sure it is rare to see employees put their jobs on the line to save a ceo. that's our show for today. i'm ali velshi. thanks for joining us. >>
3:00 am
showing support for the people of gaza. palestinians take too the streets of the west bank. in gaza itself the wounded and the bereaved speak of an attack on a u.n. school where they were sheltering. hello, welcome to al jazeera. we are live from doha. also coming up in the programme - an algerian plane carrying over 100 passengers crashes in a remote part of northern mali. ukraine's prime minister rescenes, losing the support of his politic